Which of the Following Is an Advantage of Starting a New

question 20

Multiple Choice

Which of the following is an advantage of starting a new business as a sole proprietorship?

• A)The owner has limited personal liability.
• B)A sole proprietorship has few government rules and regulations to comply with.
• C)Business profits are not taxed.
• D)A sole proprietorship can easily attain additional funding.

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Definitions:

Stock Repurchase

A corporate action in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Market Price

The market price at which you can currently buy or sell an asset or service.

Signaling Theory

A concept in economics and finance suggesting that one party credibly conveys some information about itself to another party through a signal or action.

Stock Price Decrease

A decline in the market price of a company's shares, often reflecting changes in the company's financial health, market conditions, or investor perceptions.